Student Dissertation

Agency : Micro Finance; Micro-Insurance; India; Health Insurance; India

Objective : 1) To understand the current scenario of Microfinance health insurance in India 2) To compare the various microfinance health insurance models 3) To identify the existing gaps and suggest ways of increasing the effectiveness of the model in India

Methodology : Qualitative descriptive study -The paper largely depends upon the systematic review of secondary sources based on the literature reviews, journals, books, etc.

Findings : 1. There are majorly 4 categories of insurance products – Life, Asset, Health, Crop, and Livestock. The 3 major players are – Insurance companies, Government, and Community based health insurance schemes. The 2 major characteristics – low cost and vast delivery channel. There are currently 192 (approx.) products in Indian market. Majority of market is captured by Public insurers and among providers its dominated by Private hospitals. 2. Major CBHI models are- Yeshasvini trust, student health home, Village welfare society, SKDRDP, BASIX, SKS. Majority of them operating in rural southern India. Some have tie ups with major banks of India. Government Scheme Models- RSBY, Rajiv Aarogyashree Yojana, Chief Minister's Scheme, Vajpayee Aarogyashree Scheme, Central government health scheme. Again, majorly operating in Southern India. Insurance Companies- jeevanmadhur by lic, iciciprudentiallifesarvjanasuraksha, new india-nbhagyalakshmi child welfare policy. Others- agriculture pump set insurance- new india assurance co ltd, cattle insurance by the new india assurance co ltd,hdfc ergo insurance co ltd, pradhanmantrijeevanjyotibima yojana ( pmjjby),pradhanmantrifasalbima yojana 3. Majority of schemes located in southern India, exclusion criterias, less innovations in distribution channels, lack of database and strategies to deal with them include launching policies in northern India, customized distribution channels, more involvement of private players, regular updation of database to list a few.

Recommendations : Microinsurance is definitely an answer to improving the penetration of Microinsurance in India as 90% of the Indian population majority of which belongs to unorganised sector is uncovered by any kind of insurance or pension plan. Also, it can be an effective poverty reduction strategy. Major work on developing PPP models, innovative distribution channels, regular updatation of database, evidence based decision making and efficient payment of claims can increase its penetration in Indian Market.


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